International Packaging Films Limited intends to raise Rs. 1.47 billion by issuing 70.1 million shares to the public representing 10.01 percent of its post-IPO paid-up capital at a Floor Price of Rs. 21.00/share.
The Book Building Dates are 8th & 9th May. The Company will utilize the proceeds raised from the IPO for early repayment of a long-term loan acquired to fund the expansion projects i.e. setting up manufacturing facilities of the BOPP & BOPET films.
The group is the largest flexible films manufacturer and collectively offers a diverse portfolio of packaging solutions, producing BOPP, CPP, and BOPET films, making it the first-ever group in Pakistan to provide one-window flexible packaging solutions, located at three strategically important locations in the country.
IPAK, along with its subsidiaries – Cast Packaging Films (CPAK), Petpak Films (PETPAK), and Global Packaging Films (GPAK) – collectively forms the largest manufacturing group of flexible packaging films in Pakistan, with a total nameplate capacity of over 150,000 tons per annum, spread over an area of 50 acres.
The Issue is being made through a 100 percent Book Building process whereby the bidders shall place bids for 100 percent of the Issue Size. However, the successful bidders shall be allocated only 75 percent of the shares and the remaining 25 percent shall be offered to the retail investors. In case the retail portion remains unsubscribed, the unsubscribed shares will be allotted to the successful bidders on a pro-rata basis.
International Packaging Films Limited recorded net sales of Rs. 19.9 billion in the year 2023 while its gross margin for the financial year 2023 remained at 27 percent and its profit before tax for the year 2023 remained at Rs. 2.9 billion while its net profit after tax was Rs. 1.6 billion. The company’s 3-year revenue CGAR remained at 41 percent.
Apart from catering to local demand and substituting imported products, the company also exports its products to North America, Europe, Africa, Far East and Middle Eastern countries such as Saudi Arabia and Oman earning foreign exchange for the country.
CEO IPAK Group, Naveed Godil said his company is expected to earn $15-20 million of foreign exchange through exports in year 2024/25.
Shahid Ali Habib, chief executive of Arif Habib Ltd said Investors have an exciting opportunity to invest in International Packaging Films Limited, Pakistan’s largest manufacturer of flexible packaging films (BOPP, CPP, and BOPET films), with a 3-year revenue CAGR of 41 percent and enticing forward PE and PB multiples of 4.2x and 0.8x respectively.
Arif Habib Limited (“AHL”) and AKD Securities Limited (“AKDSL”) have been mandated by International Packaging Films Limited (IPAK) to act as a Mandated Lead Manager and Joint Lead Manager, respectively, for raising funds through an Initial Public Offering(“IPO”).
Established in 2015, International Packaging Films Limited (IPAK) initiated as a green field project to manufacture Biaxially Oriented Polypropylene (“BOPP”) films through its state-of-the-art 8700mm Co-Extruded BOPP production line acquired from Bruckner Maschinenbau (Germany).
